What is specific to US companies
There is no India–US totalization agreement, so a US national on the Indian payroll can owe Indian provident fund and US Social Security at the same time. US citizens also remain taxable in the US and use the foreign earned income exclusion or foreign tax credits.
Tax on secondees
| Question | Usual answer |
|---|---|
| Indian tax on salary for Indian work? | Yes, unless all treaty short-stay conditions are met |
| Indian provident fund? | Yes, as an international worker on full pay |
| Shadow payroll needed? | Yes, if salary stays on the home payroll |
Our services
How SU and Company helps
We set up and run Indian payroll, including for staff sent from abroad.
- PF, ESI and state registrations
- Salary structures under the labour codes
- Monthly payroll, TDS and returns
- Shadow payroll and Indian tax for secondees
- Certificates of coverage and international worker PF
Questions
Is salary paid abroad taxable in India?
Salary for work done in India is generally taxable in India wherever it is paid.
General information as at 5 November 2026, not advice for a particular case. Indian and US rules change often; confirm the current position before acting. US law points should be confirmed with a US adviser.